A Kabushiki Kaisha (KK) and a Godo Kaisha (GK) are the two most common company types in Japan, and both are open to foreigners. Here’s a clear comparison to help you understand their key features and suitability:
| Feature | Kabushiki Kaisha (KK) | Godo Kaisha (GK) |
|---|---|---|
| Type | Joint-stock company | Limited liability company (LLC) |
| Public Trading | Can be publicly traded | Cannot be publicly traded |
| Setup Complexity | More complex, requires notarization of Articles of Incorporation, higher registration costs | Simpler, no notarization, lower costs |
| Cost | Higher (approx. ¥150,000 + notarization fees) | Lower (approx. ¥60,000) |
| Governance | Requires board of directors, shareholder meetings, and public disclosure of financials | No board required, minimal annual requirements, no public disclosure needed |
| Voting Rights | Based on shareholding | Unanimous consent for major decisions |
| Reputation | Seen as more prestigious and credible, especially with Japanese partners or investors | More flexible and founder-friendly, often chosen by startups and SMEs |
| Setup Timeline | 4 weeks and more (can be faster with online/fast track) | 1–3 weeks (can be faster with online/fast track) |
| Minimum Capital | ¥1 (but more is recommended for visas) | ¥1 (but more is recommended for visas) |
| Foreign Ownership | Allowed; shareholders and directors can be foreigners | Allowed; members can be foreigners |
Details for Foreigners
- KK (Kabushiki Kaisha):
- Suitable for businesses seeking a formal structure, credibility, and the ability to raise capital through share issuance.
- More appealing to Japanese partners, investors, and larger clients.
- Requires more administrative work: board meetings, shareholder meetings, public financial statements.
- Notarization of Articles of Incorporation is mandatory.
- GK (Godo Kaisha):
- Modeled after the US LLC, making it familiar to many foreign entrepreneurs.
- Favored by startups and small-to-medium businesses for its flexibility and lower costs.
- No need for notarization, board meetings, or public disclosure of financials.
- All major decisions require unanimous member approval, which can be a consideration for multi-member companies.
Additional Points
- Limited Liability: Both KK and GK provide limited liability protection to their investors/members.
- Conversion: It is possible to convert between a KK and a GK, but this takes time and incurs additional costs.
- Visa Requirements: For foreign entrepreneurs seeking a Business Manager Visa, both structures are accepted, but a higher capital amount (typically at least ¥5 million) is recommended for visa approval.
In summary:
Choose a KK if you want a prestigious, scalable company structure and plan to work with Japanese corporates or raise capital publicly. Opt for a GK if you prefer a simpler, more flexible, and cost-effective setup, especially for small businesses or startup
